European Insurers currently testing Vehicle Safety Data for Pricing
LONDON, June 18, 2020 /PRNewswire/ -- LexisNexis® Risk Solutions, a leading data, analytics and technology provider for the insurance industry, has created a solution to help insurance providers across Europe to better evaluate specific Advanced Driver Assist System (ADAS) features and vehicle safety features for pricing and underwriting. Developed specifically for motor insurance providers, LexisNexis® Vehicle Build is now available for testing.
Car manufacturers continually develop and deploy new ADAS features – sometimes releasing multiple within the same model year – and promote their effectiveness in reducing accidents. To date, it has been a challenge for insurers to identify how a vehicle is equipped when writing a motor insurance policy as each car manufacturer has created their own unique terminology, definitions and naming structures for ADAS features. In addition, many items are still not fitted as standard and must be chosen as a specific option when the vehicle is new.
To address this challenge, data scientists at LexisNexis Risk Solutions developed an ADAS classification system using machine learning to scan millions of lines of car manufacturer vehicle data to logically sequence and classify vehicle safety features and their intended operation or purpose. Serving as the foundation for LexisNexis Vehicle Build, this will help insurers factor for their presence in pricing, adjustments and renewals and establish the differences in risk profile associated with the vehicles that have these safety features.
Sherezad Rehmann, Senior Director of Global Product Management, LexisNexis Risk Solutions said, "Car manufacturers continually develop and deploy new ADAS features and promote their efficacy in reducing accidents. We therefore want to give the insurance industry the confidence to price or create products with a new level of vehicle build information to reflect the increasing penetration of ADAS in the European car parc. We have invested significantly, gathering and normalising ADAS data, looking at it through an underwriting lens, to give the industry new vehicle-centric insights for pricing and underwriting."
Harnessing the proprietary, purpose driven-insights from the classification system, LexisNexis Vehicle Build is currently testing real-world performance and claims data to help insurers rank ADAS feature performance for better underwriting decisions. The solution, available in production later this year, will provide insurers with access to these ADAS features at a VIN level to confirm what is actually fitted and not just available as an option, as well as confirm the type and combination of ADAS features.
Vehicles from 2014 are considered to be within the 'ADAS era,' as that is when we see ADAS feature becoming more widely available on cars. As expected, this trend has continued and according to SBD Automotive, across Europe, the average number of ADAS features offered on a given new model increased from 4.2 in 2017 to 7.1 in 2020. This represents a year-on-year growth rate of 19.1% but LexisNexis Risk solutions has found that it is more than just the number of ADAS features offered that insurance carriers should consider. Vehicle Build confirms actual fitment and not just availability. LexisNexis internal research shows that the types and combinations of ADAS features can provide greater precision in managing insurance risk.
LexisNexis Risk Solutions helps leading insurance companies innovate, challenge the status quo and improve outcomes. By harnessing our deep insurance knowledge, breakthrough technologies, rich data and powerful analytics through a single point of entry, we enable our insurance customers to make more accurate decisions and strengthen their consumer relationships. LexisNexis Risk Solutions is among the largest providers of data to the insurance industry with more than 30 years of experience and a global business spanning the US, Spain, Brazil, China, UK and Ireland. We are committed to guarantee the highest data management, information security, data privacy and regulatory standards.
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About LexisNexis Risk Solutions LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based and analytics and decision tools for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
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Media contacts:Alison Reeson, Parm Heer, Jane Lewis at HSL0208 977 9132lnrs@harrisonsadler.com
Regina HaasSenior Director, Global Media and Analyst RelationsInsurance, Connected Car and Coplogic SolutionsLexisNexis Risk Solutions O: +1.678.694.3569M: +1.678.896.1463Regina.Haas@lexisnexisrisk.com
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